SCC Holdings Berhad Annual Report 2018

SCC Holdings Berhad | Annual Report 2018 .9 MANAGEMENT DISCUSSION AND ANALYSIS (cont’d) Group Revenue by Business Segment SEGMENTAL BUSINESS REVIEW/ REVIEW OF OPERATING ACTIVITIES Our business structure is divided into 3 segments: Animal Health Products Division (“AHPD”) Revenue contribution from AHPD increased marginally by RM0.38m or 1.2%. Its total revenue contribution for the year represented approximately 48.9% of the Group's total revenue. The slight increase is mainly due to higher demand from its customers during the financial year. The feed additives and pathogen control market remain competitive with minimal new customers on board. We managed to sell more of the methionine, however the prices of amino acid tumble due to oversupply in the market during the financial year. Overall, we managed to sell 7.8% more in quantity, but the revenue improved by only 1.2%. The division will continue to source new products to complement its existing range of products to enhance its product portfolio. Foodservice Equipment Division (“FSED”) The segment saw an increase in revenue of RM3.97m and improved approximately 13.4% from FYE 2017 and contributed 50.8% to the overall revenue of the Group. The increase is mainly due to increased demand for our foodservice equipment and after sales services by our customers. Despite most of our products carry premium pricing, due to excellence after sales service and support, the division continues to flourish. FSED managed to achieve a record breaking year with its’ highest ever revenue since inception. We have added 2 additional international foodservice equipment brands to our products portfolio during the year and continue to work hard to command market leadership and offer more choices to customers. Food Manufacturing (“SCCFM”) For FYE2018, SCCFM recorded 16.4% decrease in revenue which represented 0.3% of total group revenue due to decrease in demands from chain restaurants. The division will expand the range of food premixes and improve production efficiency through continuous R&D effort in formulation of new recipes and ingredients to fuel further growth in the segment. SCCFM has expanded its manufacturing capability and capacity to cater for upcoming products and markets during the year, aiming for mid to long-term success. Total: RM66,159,000 Total: RM61,847,000 SCC FM RM250,000 FSED RM29,616,000 AHPD RM31,981,000